Intel (INTC) is declining 2.5% today, and Schwab Network reporter Caroline Woods noted that the shares may be falling due to cautious comments by the chipmaker’s new CEO.
Statements by Commerce Secretary Howard Lutnick could also be weighing on INTC stock, Woods stated.
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The New CEO’s Words of Warning
Speaking yesterday, INTC CEO Lip-Bu Tan said that turning around the chipmaker “won’t be easy” and “won’t happen overnight.” He added that the firm will face difficulties for an extended period after it “fell behind on innovation” and was “slow to adapt.”
Tan noted that he would attempt to recruit top engineers while continuing to build chip factories. Additionally, Intel will seek to compete with Nvidia (NVDA) in the rack-scale AI server market, the CEO stated.
Trump Administration to Get Tougher on Chipmakers
Commerce Secretary Howard Lutnick suggested that he would refrain from releasing additional funds to chipmakers until they commit to investing more money in the U.S., Bloomberg reported. Within the semiconductor sector, Intel has been one of the top recipients of funds from Washington.
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This article is originally published at Insider Monkey.
